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POPULATION

9.2m

CURRENCY

€ (EUR)

CAPITAL CITY

Vienna

Overview

Austria, a landlocked country in Central Europe, is renowned for its stunning Alpine landscapes, rich musical heritage, and imperial history. From the majestic Alps to the elegant cities of Vienna and Salzburg, Austria offers a wealth of cultural and natural attractions.

The country's economy is highly developed, with key sectors including manufacturing, tourism, and financial services. Austria is known for its high quality of life, strong social welfare system, and commitment to environmental sustainability.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Employment Contracts

Written Agreements

In Austria, there are no statutory requirements about the form of an employment contract with a few exceptions (apprenticeship jobs and several positions within the public sector). An employment contract may be either oral, written, or explicit. If no written contract is used, employees and independent contractors receive a statement of terms and conditions of employment referred to as Dienstzettelat the start of employment. It must include the names and addresses of both the employer and employee, the start date of employment, the duration of the contract if fixed-term, the notice period and termination date, the primary workplace and any potential reassignments, the employee's job title and responsibilities, the base salary and additional compensation, the payment schedule, the annual leave entitlement, the standard working hours, references to applicable collective agreements and company policies, and the details of the employee's provident fund or pension scheme.

Oral Agreements

In Austria, if the employment relationship is based on an oral contract, the employer must provide the employee with a written summary of the most important contract terms.

Implied Agreements

If a person undertakes to provide services for another person for a certain period of time, a service contract is created; if someone undertakes the production of a work for a fee, a work contract is created. A person can undertake to provide a service or remuneration for a service not only by words and signs commonly accepted, but also tacitly declared by such actions which leave no reasonable doubt. The customs and customs applicable in honest dealings must be taken into account even in implied contracts. Although implicit work contracts are possible in Austria, the employer must still draft a written employment summary of all important aspects of the work that will be completed.

Working Hours

In Austria, regular working hours, as stipulated in the Working Time Act, are 8 hours a day and 40 hours per week. There are a few exceptions where the normal working hours are reduced.

Public Holidays

  • New Year’s Day - January 1
  • Epiphany - January 6
  • Easter Monday - date subject to change every year
  • Labor Day - May 1
  • Ascension Day - date subject to change every year
  • Whit Monday - date subject to change every year
  • Corpus Christi - May 31
  • Maria Ascension/Assumption Day - August 15
  • National Day - October 26
  • All Saints’ Day - November 1
  • Immaculate Conception - December 8
  • Christmas Day - December 25
  • Boxing Day - December 26

Probationary Period

During probation, an employment contract may be terminated by either party at any time without special reasons and without observing deadlines and dates. The probationary period may not exceed 1 month with the exception of apprenticeships, which can have a probationary period that lasts up to 3 months. A probationary period can only be agreed at the beginning of an employment relationship.

Employment Termination/Severance

Notice Period

The length of termination notice periods that an employer must abide by prior to terminating an employee is generally proportionate to the length of employment and can range from 1 day (casual workers) to 5 months. The notice period also takes into account the status of the worker (blue-collar worker or white-collar employee). Employees can terminate their contracts by giving a month's notice. Employees with lifetime contracts or contracts with a fixed period greater than 5 years may terminate their contract by giving 6 months' notice after more than 5 years of service.

Severance Benefits

New severance pay was introduced for employees whose employment began after January 1, 2003. Employers must pay a severance allowance to employees when an employment contract is terminated. During the employment contract, the employer must pay 1.53% of each employee’s gross salary to a severance payment fund called BV-Kasse. Upon termination, the employee is able to decide to have these funds paid out as a severance (the employee must have worked for 3 years with this employer to have this option) or leave the pay in the fund. If the employee decides to leave it in the fund, then the employer will continue to contribute to the fund on a monthly basis and, at termination, the employer will have no liability for a severance payment. The employee has six months from the end of the employment relationship to notify the BV-Kasse as to how the severance will be disbursed.

For employees whose employment began before January 1, 2003, the amount of the severance pay depends on the length of the employment relationship and the remuneration due for the last month of employment. Employees are entitled to 2 monthly wages after 3 years of service, 3 monthly wages after 5 years of service, 4 monthly wages after 10 years of service, 6 monthly wages after 15 years of service, 9 monthly wages after 20 years of service and 1 annual salary after 25 years of service.

If the employee chooses to terminate the contract, is dismissed for reasonable cause, or resigns without just cause, then the capital remains in the fund and continues to be invested. The amount can then be drawn upon once the employee reaches the age of retirement.

Compensation

Minimum Wage

In Austria, there are no statutory minimums for wages. Instead, they are set within collective agreements. However, all collective agreements must stipulate a minimum wage of at least EUR 1,500 (Euros) per month.

Overtime, Holiday & Vacation Pay

Employers may prescribe overtime to their workers with a limit of five overtime hours within a week with a maximum of 60 overtime hours within a calendar year. Overtime work is paid at a premium of 50% over the standard wages of the employee. Employees and employers can agree to compensate overtime with time off instead of wages.

Employees working on Sundays or public holidays are compensated with additional pay as determined in their collective agreements.

Immigration & Visas

Visas

Austria is a party to the Schengen Implementation Agreement, which grants uniform entry to the Schengen countries. The following types of visas are available to persons who enter Austria:

  • Visa A (Transit visa) - valid for airport transit
  • Visa C (Tourist visa) - valid for 90 days stay in a 180 day period.
  • Visa D (Residence visa) - valid for up to six to 12 months of stay

Work Permits

Foreign nationals from countries outside the EU who wish to live and work within Austria must apply for a Red-White-Red Card. Workers from EU countries are able to apply for a similar card, the EU Blue Card. Both cards grant temporary residence and the right to work for a single employer over a 2-year period but are governed by a different set of rules.

Third country citizens can be granted an EU Blue Card, if they:

  • Have completed a course of study at a university or other tertiary educational institution with a minimum duration of 3 years
  • Have received a binding job offer for at least 1 year in Austria and the employment corresponds to your education
  • Will earn a gross annual income of at least the average gross annual income of full-time employees (in 2023: at least EUR 45,595 annual salary plus special payments)
  • The labor market test (Arbeitsmarktprüfung) shows that there is no equally qualified worker registered as a jobseeker with the Public Employment Service (AMS) available for the job

Employees with EU Blue Card or Red-White-Red Card who have worked for at least 21 months during the preceding 24 months are eligible for Red-White-Red Card Plus. This card allows them fixed-term settlement and unlimited labor market access (as a self-employed or an employed person, not limited to a specific employer).

Population 9.2m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

59.8%

Urban Population

94.9%

Internet access

99.5%

Banking access

100%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Vacation Leave

All employees who have performed at least 6 months of service are entitled to annual paid leave of 5 weeks (25 days for those working 5 days a week and 30 days for those working 6 days a week). Those who have more than 25 years of service with an employer have an entitlement to 6 weeks for annual leave. Employees are entitled to their usual wages during annual leave.

The holiday entitlement arises pro rata in the first 6 months of the first year of work. After 6 months of service, the holiday entitlement accrues in full in the first year of work. From the second year of work, the employee is entitled to the entire vacation at the beginning of the working year. Annual leave can be split into 2 parts to allow more flexibility but each part must have a duration of at least 6 working days.

Employees cannot take compensation in place of their annual leave except when dealing with employment termination prior to exercising their annual leave. The entitlement to annual leave expires after 2 years of accrual.

Sick Leave

In the event of illness, employees are obliged to inform their employer immediately of their inability to work. If the employee is unable to work after starting work due to illness or accident, without being responsible for this intentionally or through gross negligence, they are entitled to continued payment of wages for 6 weeks. Depending on the length of the employment relationship, the entitlement increases to up to 12 weeks.

No sick pay is due for the first 3 days of incapacity to work. During this period, however, employees are generally entitled to continued payment of wages. From the fourth day of incapacity for work, sick pay is granted as a statutory minimum benefit of 50% of the assessment basis for the calendar day. From the 43rd day of an illness associated with incapacity for work, the sickness benefit increases to 60% of the assessment basis for the calendar day.

Maternity Leave

Generally, maternity leave lasts 16 weeks: 8 weeks can be prior to birth and 8 weeks after. Although the postnatal period is set at 8 weeks, it may be extended to 12 weeks in the case of premature, multiple, or cesarean births. Other than the 8-week prenatal leave, a pregnant emplpyee may receive leave from work if she provides a certificate from a Labor Inspectorate doctor or another medical officer that her (or her child’s) life and health are endangered if she continues to work.

As soon as they become aware of their pregnancy, expectant mothers must notify the employer of this, stating the expected date of birth. In addition, they are obliged to draw the employer's attention to the beginning of the 8-week period within the fourth week before the beginning of the period.

Paternity Leave

Since March 2017, paternity leave and benefits for new fathers are applied to natural and adoptive fathers. Paternity leave is one month (28-31 days) and must be taken within 91 days of the birth of the child. To be eligible, fathers must be employed, have valid health and pension insurance for at least 182 days prior to applying for the bonus. The benefit is paid at EUR 54.87 (Euros) per day, making a total of around EUR 1,700 per month.

Social Security

Pension

In Austria, there is compulsory social insurance coverage for persons who participate in paid employment or are self-employed. Minimally employed workers are entitled to a limited number of protections under the social insurance system, including old-age pension. The age for retirement is 65 for men and 60 for women, as long as they have paid insurance contribution for 180 months (15 years), with a minimum of 84 monthly contributions made in one gainful employment.

There are two types of pension calculations based the year of birth:

  • Persons born before January 1, 1955 - the amount of pension is calculated as a percentage of "assessment basis," which is the average of 384 best monthly remunerations. The percentage is determined as 1.78 increase points per year of insurance.
  • Persons born after January 1, 1955 - under the new system, in place since 2004, a pension account is created for each individual and is used for paying different mandatory pensions. The amount of retirement pension is calculated as 1.78% of the annual salary each year. A bonus of 5.1% per year is added for retirement after the standard retirement age, limited to a maximum of 15.3%. A maximum of 91% of the assessment basis can be granted as a monthly pension.

Dependents/Survivors Benefits

Survivors of a deceased worker eligible for pension benefits include spouses and children. They are eligible for benefits if the deceased insured employee completed the following period of insurance:

  • If they died before the age of 50 years, a minimum insurance period of 60 months is required.
  • If they died after the age of 50 years, an insurance period of 180 months is required.

Surviving spouse is eligible for a life-long pension if the following conditions are met:

  • The widow(er) is at least 35 years old or at the time of the spouse's death.
  • There is a child from the marriage.
  • The widow(er) is disabled at the time of the spouse's death.
  • They had been married for at least 3 to 10 years (the number of years will depend on the age difference between the surviving spouse and the deceased insured person)

In the case when none of the conditions are met, a temporary widow(er)'s pension is paid for 30 months. The amount of widow(er)'s pension is calculated as a percentage of the pension that the deceased would have been eligible to, ranging from 0 to 60%.

Children of the deceased insured persons are eligible for pension up to the age of 18 years or 27 years if they are students. The application for the pension must be made within 6 months of the death of an insured parent. The amount is 40% of the deceased parent's pension for each child. For children who have lost both parents, the pension is 60%.

Invalidity Benefits

Disability benefit is paid based on the degree of disability as a percentage of the assessment base. The assessment base is calculated as the average monthly salary of the insured person over the last year before disability set in.

In the case of permanent disability (where a worker has lost 100% of working capacity), 66.6% of the assessment base is paid. A proportionately reduced permanent disability benefit is paid with at least 20% reduction in earning capacity. The permanent partial disability benefit (referred to as supplementary benefit) is 20% of permanent disability benefit for loss of working capacity of 50-70%, and 50% of the permanent disability benefit when the loss in working capacity is greater than 70%. If the insured worker has at least 50% of the loss of working capacity, 10% of the total disability pension is paid for each child under 18 (age 27 for students or no age limit for disabled children). The total disability pension, supplementary pension including family supplements cannot exceed 100% of the assessment base.

For workers who sustain injuries from occupational accidents or diseases, there are disability benefits to assist the employee. When a worker has lost partial working capacity, he or she may receive a temporary disability benefit, which is the same as cash sickness benefit. The temporary disability benefit is paid until the insured worker is assessed with a permanent disability. The permanent or partial disability pension depends on the assessment base, which is an insured worker's average covered earnings in the last year before the disability began. Employers are also required to provide re-training allowance to employees for rehabilitation.

Minimum Age

The general minimum age for employment as declared while ratifying the Minimum Age Convention is 15 years (or until the end of compulsory education). Occasional light work is allowed from the age of 13 years. The minimum age for hazardous work is 18 years. Employees under the age of 18 cannot work on Sundays or public holidays.

Daily working time for youth is 8 hours. Weekly working hours must not exceed 40 hours unless otherwise provided in the law. 9 hours are allowed in cases where the 40-hour weekly limit is averaged over a period of longer than a week; or where the 40-hour weekly limit is divided unevenly over individual days if it results in a longer period of weekly rest.

Young workers must not be involved in night work (between 8:00 PM and 6:00 AM), except in certain industries such as restaurants, shift work, entertainment (film, television, and radio recording), bakeries and hospitals.

Unemployment 5.4%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

60.6%

Labor force population share

46.9%

Female share of labor force

85%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

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